GBP/USD: Stage set for further decline

The GBP/USD pair remained under some intense selling pressure on Thursday and extended this week's rejection slide from the 1.3200 round-figure mark amid a strong pickup in the US dollar demand, Haresh Menghani from FXStreet reports.

Key quotes 

“The ongoing rout in the equity markets provided a strong boost to the greenback's status as the global reserve currency and was seen as one of the key factors behind the pair's steep intraday decline of over 350 pips to fresh five-month lows.”

“The UK government was reportedly considering to shut down schools across the country to try to delay the spread of coronavirus, which contributed to the cable's slide to levels just below the key 1.2500 psychological mark.”

“The bearish pressure showed some signs of easing, which assisted the pair to stage a modest recovery after the Fed moved to try to calm unusual disruption in the US Treasury markets and announced to inject more than $1.5 trillion of temporary liquidity into the short-term funding markets.”

“Market participants are likely to take cues from the Bank of England minutes. This coupled with fresh developments around the coronavirus saga might continue to infuse volatility across the FX market and produce some meaningful trading opportunities on the last day of the week.”